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www.entrepreneurindia.co Corn Flakes Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, plant layout, process flow sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis

Corn Flakes- Manufacturing Plant, Detailed Project Report ... · Corn Flakes Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research,

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Corn Flakes Manufacturing Plant, Detailed Project Report,

Profile, Business Plan, Industry Trends,

Market Research, Survey, Manufacturing

Process, Machinery, Raw Materials, Feasibility

Study, Investment Opportunities, Cost and

Revenue, Plant Economics, Production

Schedule, Working Capital Requirement,

plant layout, process flow sheet, Cost of

Project, Projected Balance Sheets, Profitability

Ratios, Break Even Analysis

Introduction

Corn flakes being one of most nutritious foods and

is consumed as breakfast food not only in India

but-elsewhere in the world. Basically, it is prepared

from maize; this is the main raw material. Flavours,

like sugar or salt are also added. Maize, the main

raw material, is itself a corn grain. Corn flakes have

very good taste. Though several other breakfast

cereals are also available in the market but they are

still to gain popularity.

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Besides the good taste, crispy nature, corn flakes

are also popular because of their friable texture,

blend flavour and above all the ease with which it

can be prepared for consumption. Corn Flakes

can be manufactured either of the two white or

yellow corns. The only difference is that flake

formed using yellow corn is more dark in colour.

From raw corn flakes (before roasting) corn syrup

can be prepared. It is prepared by removing starch

from maize by soaking and treating with

chemicals. It is also being used by liquor industry

for manufacture of beer etc.

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It all began with Kellogg's entry in India with its

cornflakes. It was marketed by the establishment of a

100% subsidiary as Kellogg's India, being the parent

company's 30th manufacturing facility, at a total

investment of USD 30 mn at Taloja, near Mumbai

(Maharashtra). India is considered as one of the largest

market for breakfast cereals worldwide. The company was

aiming at a business volume of Rs 2 bn in three years'

time. When Kellogg's entered India, the per capita

consumption of breakfast cereals was a low 2 gm per

family per annum which increased to 4.5 gm against 5 kg

per annum globally.

Few Indian Major Players are as under

Bagrrys India Ltd.

K C L Ltd.

Kellogg India Pvt. Ltd.

Mohan Meakin Ltd.

Mysore Sales International Ltd.

Riddhi Siddhi GlucoBiols Ltd.

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PROJECT AT A GLANCE

COST OF PROJECT MEANS OF FINANCE

Particulars Existing Proposed Total Particulars Existing Proposed Total

Land & Site Development Exp. 0.00 85.00 85.00Capital 0.00 70.61 70.61

Buildings 0.00 41.60 41.60Share Premium 0.00 0.00 0.00

Plant & Machineries 0.00 84.90 84.90Other Type Share Capital 0.00 0.00 0.00

Motor Vehicles 0.00 6.00 6.00Reserves & Surplus 0.00 0.00 0.00

Office Automation

Equipments 0.00 31.25 31.25Cash Subsidy 0.00 0.00 0.00

Technical Knowhow Fees &

Exp. 0.00 12.00 12.00Internal Cash Accruals 0.00 0.00 0.00

Franchise & Other Deposits 0.00 0.00 0.00

Long/Medium Term

Borrowings 0.00 211.83 211.83

Preliminary& Pre-operative

Exp 0.00 2.00 2.00Debentures / Bonds 0.00 0.00 0.00

Provision for Contingencies 0.00 8.00 8.00Unsecured Loans/Deposits 0.00 0.00 0.00

Margin Money - Working

Capital 0.00 11.70 11.70

TOTAL 0.00 282.45 282.45TOTAL 0.00 282.45 282.45

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PROJECT AT A GLANCE

Year Annualised Book

Value

Debt Dividen

d

Retained

Earnings

Payout Probable

Market

Price

P/E

Ratio

Yield Price/

Book Value

EPS CEPS Per Share

Per

Share Per Share

No.of

Times

Rs Rs Rs Rs Rs % Rs % Rs %

1-2 5.26 8.55 15.26 24.00 0.00 100.00 5.26 0.00 5.26 1.00 0.00

2-3 8.12 10.98 23.39 18.00 0.00 100.00 8.12 0.00 8.12 1.00 0.00

3-4 10.92 13.42 34.31 12.00 0.00 100.00 10.92 0.00 10.92 1.00 0.00

4-

5 13.61 15.80 47.92 6.00 0.00 100.00 13.61 0.00 13.61 1.00 0.00

5-

6 16.18 18.10 64.10 0.00 0.00 100.00 16.18 0.00 16.18 1.00 0.00

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PROJECT AT A GLANCE

Year D. S. C. R. Debt / -

Deposits

Debt

Equity

as-

Equity

Total

Net

Worth

Return

on Net

Worth

Profitability Ratio Assets

Turnover

Ratio

Current

Ratio

Individu

al

Cumulativ

e

Overall GPM PBT PAT Net

Contrib

ution

P/V

Ratio

(Number of times) (Number of times) % % % % % %

Initial 3.00 3.00

1-2 1.27 1.27 1.57 1.57 1.93 25.37% 12.78% 8.90% 248.55 59.52% 1.37 0.84

2-3 1.58 1.42 0.77 0.77 1.04 28.34% 17.96% 11.78% 289.97 59.52% 1.49 1.26

3-4 1.94 1.58 1.93 0.35 0.35 0.56 30.32% 21.58% 13.85% 331.39 59.52% 1.51 1.81

4-5 2.37 1.75 0.13 0.13 0.29 31.64% 24.14% 15.34% 372.82 59.52% 1.46 2.46

5-6 2.88 1.93 0.00 0.00 0.14 32.50% 25.95% 16.41% 414.24 59.52% 1.37 5.38

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PROJECT AT A GLANCE

BEP

BEP - Maximum Utilisation Year 5

Cash BEP (% of Installed Capacity) 53.14%

Total BEP (% of Installed Capacity) 56.41%

IRR, PAYBACK and FACR

Internal Rate of Return .. ( In %age ) 24.56%

Payback Period of the Project is ( In Years ) 2 Years 4 Months

Fixed Assets Coverage Ratio ( No. of times ) 3.847

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Major Queries/Questions Answered in the Report?

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1. What is Corn Flakes industry?

2. How has the Corn Flakes industry performed so far

and how will it perform in the coming years?

3. What is the Project Feasibility of a Corn Flakes

Plant?

4. What are the requirements of Working Capital for

setting up a Corn Flakes plant?

5. What is the structure of the Corn Flakes Business

and who are the key/major players?

6. What is the total project cost for setting up a Corn

Flakes plant?

7. What are the operating costs for setting up a Corn

Flakes plant?

8. What are the machinery and equipment

requirements for setting up a Corn Flakes plant?

9. Who are the Suppliers and Manufacturers of Plant

& Machinery for setting up a Corn Flakes plant?

10. What are the requirements of raw material for

setting up a Corn Flakes plant?

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11. Who are the Suppliers and Manufacturers of Raw

materials for setting up a Corn Flakes plant?

12. What is the Manufacturing Process and

Formulations of a Corn Flakes plant?

13. What is the total size of land required for setting

up a Corn Flakes plant?

14. What will be the income and expenditures for a

Corn Flakes plant?

15. What are the Projected Balance Sheets of a Corn

Flakes plant?

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16. What are the requirement of utilities and

overheads for setting up a Corn Flakes plant?

17. What is the Built up Area Requirement and cost for

setting up a Corn Flakes Business?

18. What are the Personnel (Manpower) Requirements

for setting up a Corn Flakes Business?

19. What are Statistics of Import & Export for Corn

Flakes?

20. What is the time required to break-even?

21. What is the Break-Even Analysis of a Corn Flakes

plant?

22. What are the Project financials of a Corn Flakes

plant?

23. What are the Profitability Ratios of a Corn Flakes

plant?

24. What is the Sensitivity Analysis-Price/Volume of a

Corn Flakes plant?

25. What are the Projected Pay-Back Period and IRR of

a Corn Flakes plant?

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26. What is the Process Flow Sheet Diagram of a Corn

Flakes plant?

27. What are the Market Opportunities for setting up a

Corn Flakes plant?

28. What is the Market Study and Assessment for

setting up a Corn Flakes plant?

29. What is the Plant Layout for setting up a Corn

Flakes Business?

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Table of Contents

of the

Project Report

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1. Project Location

1.1. District Profile & Geotechnical Site

Characterization

1.1.1. General

1.1.2. Physical Characteristics

1.1.3. Climate

1.1.4. Transportation And Communications

1.1.5. Map

1.1.6. Economy

1.1.7. Culture & Attitudes

2. Introduction2.1. Corn Flakes:

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3. Uses And Applications

3.1. Corn Flakes:

4. Properties

5. B.I.S Specification

5.1. Is : 1158-1973 - Corn Flakes

6. Market Survey

6.1. Lead Players Of Breakfast

Cereals

7. Financials & Comparison Of Major Indian

Players/Companies

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7.1. About Financial Statements Of

Cmie Database

7.2. Profits & Appropriations

7.3. Total Liabilities

7.4. Total Assets

7.5. Net Cash Flow From Operating

Activities

7.6. Section – I

7.6.1. Name Of Company With Contact

Details

7.6.2. Name Of Director(s)

7.6.3. Plant Capacity

7.6.4. Location Of Plant

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7.6.5. Name of Raw Material(S) Consumed With

Quantity & Cost

7.7. SECTION – II

7.7.1. Assets

7.7.2. Cash Flow

7.7.3. Cost as % Ge of Sales

7.7.4. Forex Transaction

7.7.5. Growth in Assets & Liabilities

7.7.6. Growth in Income & Expenditure

7.7.7. Income & Expenditure

7.7.8. Liabilities

7.7.9. Liquidity Ratios

7.7.10. Profitability Ratio

7.7.11. Profits

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7.7.12. Return Ratios

7.7.13. Structure Of Assets & Liabilities (%)

7.7.14. Working Capital & Turnover Ratios

8. Export & Import Statistics Data Of India8.1. Export Statistics Data On Corn Flake

8.2. Import Statistics Data On Corn Flake

9. Present Manufacturers

10. Raw Material Details10.1. Nutritive Value:-

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10.2. Chemical Composition Of

Rice And Maize

11. Manufacturing Process

12. Process Flow Diagram

13. Drawing Of The Processing Line

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14. Suppliers Of Plant & Machinery

15. Suppliers Of Raw Material

16. Product, Machinery & Raw Material

Photographs16.1. Product Photographs

16.2. Machinery Photographs

16.3. Raw Material Photographs

17. Plant Layout

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Project Financials

• Project at a Glance Annexure

• Assumptions for Profitability workings ………………………..1

• Plant Economics…………………………………………………..2

• Production Schedule………………………………………………3

• Land & Building……………………………………………….……4

Factory Land & BuildingSite Development Expenses

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• Plant & Machinery……………………………………………..……..5Indigenous MachineriesOther Machineries (Miscellaneous, Laboratory etc.)

• Other Fixed Assets………………………………………..........….......6Furniture & FixturesPre-operative and Preliminary ExpensesTechnical KnowhowProvision of Contingencies

• Working Capital Requirement Per Month……………………….…7Raw MaterialPacking MaterialLab & ETP Chemical CostConsumable Store

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• Overheads Required Per Month and Per Annum………….…….…8Utilities & Overheads (Power, Water and Fuel Expenses etc.)Royalty and Other ChargesSelling and Distribution Expenses

• Salary and Wages …………………………………………....…………..9

• Turnover Per Annum ……………………………………………........…10

• Share Capital………………………………………………………….....11

Equity CapitalPreference Share Capital

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• Annexure 1 :: Cost of Project and Means of Finance

• Annexure 2 :: Profitability and Net Cash Accruals

Revenue/Income/Realisation

Expenses/Cost of Products/Services/Items

Gross Profit

Financial Charges

Total Cost of Sales

Net Profit After Taxes

Net Cash Accruals

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• Annexure 3 :: Assessment of Working Capital

requirements

Current Assets

Gross Working Capital

Current Liabilities

Net Working Capital

Working Note for Calculation of Work-in-

process

• Annexure 4 :: Sources and Disposition of Funds

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• Annexure 5 :: Projected Balance Sheets

ROI (Average of Fixed Assets)

RONW (Average of Share Capital)

ROI (Average of Total Assets)

• Annexure 6 :: Profitability Ratios

D.S.C.R

Earnings Per Share (EPS)

Debt Equity Ratio

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• Annexure 7 :: Break-Even Analysis

Variable Cost & Expenses

Semi-Variable/Semi-Fixed Expenses

Profit Volume Ratio (PVR)

Fixed Expenses / Cost

B.E.P

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• Annexure 8 to 11 :: Sensitivity Analysis-Price/Volume

Resultant N.P.B.T

Resultant D.S.C.R

Resultant PV Ratio

Resultant DER

Resultant ROI

Resultant BEP

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• Annexure 12 :: Shareholding Pattern and Stake Status

Equity Capital

Preference Share Capital

• Annexure 13 :: Quantitative Details-Output/Sales/Stocks

Determined Capacity P.A of Products/Services

Achievable Efficiency/Yield % of

Products/Services/Items

Net Usable Load/Capacity of Products/Services/Items

Expected Sales/ Revenue/ Income of Products/ Services/

Items

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• Annexure 14 :: Product wise Domestic Sales

Realisation

• Annexure 15 :: Total Raw Material Cost

• Annexure 16 :: Raw Material Cost per unit

• Annexure 17 :: Total Lab & ETP Chemical Cost

• Annexure 18 :: Consumables, Store etc.

• Annexure 19 :: Packing Material Cost

• Annexure 20 :: Packing Material Cost Per Unit

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• Annexure 21 :: Employees Expenses

• Annexure 22 :: Fuel Expenses

• Annexure 23 :: Power/Electricity Expenses

• Annexure 24 :: Royalty & Other Charges

• Annexure 25 :: Repairs & Maintenance

Expenses

• Annexure 26 :: Other Manufacturing Expenses

• Annexure 27 :: Administration Expenses

• Annexure 28 :: Selling Expenses

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• Annexure 29 :: Depreciation Charges – as per Books

(Total)

• Annexure 30 :: Depreciation Charges – as per Books (P

& M)

• Annexure 31 :: Depreciation Charges - as per IT Act

WDV (Total)

• Annexure 32 :: Depreciation Charges - as per IT Act

WDV (P & M)

• Annexure 33 :: Interest and Repayment - Term Loans

• Annexure 34 :: Tax on Profits

• Annexure 35 :: Projected Pay-Back Period and IRR

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Niir Project Consultancy Services (NPCS) can provide Detailed Project Report on

Corn Flakes

See morehttp://goo.gl/BmR50Chttp://goo.gl/fy8YHwhttp://goo.gl/RAHhj3

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